Asian stocks slump, dollar shines as inflation fears flare

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Inflation fears pressured Asian stocks and buoyed the dollar on Thursday after data overnight showed U.S. consumer prices surged at the fastest pace since 1990 last month, boosting the case for faster Federal Reserve policy tightening.

bucked the trend by rising 0.24%, supported by the yen's weakness against a resurgent dollar and as U.S. stock futures ticked up slightly.tumbled 0.82%, its worst day in more than a month. That marked the first back-to-back declines in a month, after the index closed at a record peak to start the week.

"The Fed's resolve is facing a testing time," Rodrigo Catril, a senior foreign-exchange strategist at National Australia Bank in Sydney, wrote in a client note. Inflation expectations soared, with the five-year breakeven inflation rate soaring to a record 3.113%, Wall Street's so-called fear gauge, touching its highest level in nearly one month.

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